Case | HBS Case Collection | July 2001 (Revised March 2002)

Nasdaq Stock Market, Inc., The

by Andre F. Perold and Austin K Scee


NASDAQ's mission "to facilitate capital formation" is threatened by the emergence of Electronic Communication Networks, which are not as heavily regulated by the SEC. This case reviews the development of NASDAQ and its evolution from a loose network of broker-dealers through to its proposed SuperMontage. SuperMontage is a centralized order book, where multiple parties can place orders (both buy and sell) for the stocks they wish to trade and where entire supply and demand curves can be displayed. To understand the context, students will learn about the structure of the capital markets and why it concerns regulators and investors.

Keywords: Capital Markets; Stocks; Financial Markets; Governing Rules, Regulations, and Reforms; Innovation Strategy; Performance Efficiency; Perspective;


Perold, Andre F., and Austin K Scee. "Nasdaq Stock Market, Inc., The." Harvard Business School Case 202-008, July 2001. (Revised March 2002.)